Insurance appraisal in Montana
Montana has no statute that writes out the appraisal steps, so your policy's Appraisal condition sets the process and the days. The Montana Supreme Court has upheld appraisal clauses as a way to set the amount of loss, and it has set aside an award that rested on arbitrary figures. One Montana feature to know: a statute voids contract terms that cut short the time to sue, and the court used its predecessor to strike a one-year suit clause in a fire policy.
At a glance
- Name an appraiser
- Set by your policy. No Montana statute we found sets the number. Forms the Montana Supreme Court has quoted gave each side 20 days to name an appraiser, but read yours.
- Choose an umpire
- Set by your policy. The forms the court has quoted gave the appraisers 15 days to agree on an umpire.
- If they cannot agree
- If your form matches those the court has quoted, either side asks a judge of a court of record in the state where the property is located to choose the umpire.
- Does appraisal pause the deadline to sue?
- We found no Montana rule that pauses the deadline for appraisal. MCA 28-2-708 voids contract terms that limit the time to enforce your rights, and in 1932 the court struck a 12-month fire-policy suit clause under that statute's predecessor. We found no recent decision on the suit clauses in current forms, so keep your policy's deadline in view. The written-contract period is 6 years (MCA 27-2-202).
- Who may serve
- We found no Montana license for appraisers or umpires. Adjusters and public adjusters are licensed under MCA title 33, chapter 17. Forms ask for a competent and disinterested or impartial appraiser. More below
Deadlines in Montana
The clock
- Day 0Written demandEither party, in writing
- By agreementAppraisers namedNo fixed day count
- By agreementUmpire chosenBy agreement, or a court appoints
- On siteInspectionBoth estimates, line by line
- The awardAward signedAny two of three
- After the awardPaymentOften 60 days after the award is filed (policy form); statute: pay or deny within 30 days of proof of loss
Appraisal starts with a written demand under the Appraisal condition of your policy. The same condition sets how many days each side has to name an appraiser and how long the appraisers have to agree on an umpire. Those numbers differ from form to form, so read yours rather than counting on a standard figure. Under Montana decisions, an insured does not have to appraise before suing unless the insurer demands it, and the insurer has to demand within a reasonable time. Courts look at whether the delay caused prejudice and whether good-faith talks had broken down (School District No. 1 v. Globe, 1965). Once appraisal is properly demanded for the amount of loss, the court has held the parties to the process (Garretson, 1988, an auto policy).
After the panel is set, the appraisers inspect, compare their numbers line by line, and send only the differences to the umpire. Montana's claims-payment statute (MCA 33-18-232) requires an insurer to pay or deny within 30 days of receiving proof of loss, or 60 days if it reasonably asks for more information. It does not set a separate clock for paying an award. The form quoted in a Montana hail case made loss payable 60 days after proof of loss and the filing of an appraisal award. Ask the insurer in writing when it will pay once the award is filed.
What the panel decides
Amount of loss; coverage stays with the court
Montana treats a property appraisal as a way to fix the value of the loss, which is a question of fact. It does not treat it as arbitration of every dispute under the policy (School District No. 1 v. Globe, 1965; Garretson, 1988). Coverage, how the policy is read, and bad faith stay with the court. We did not find a Montana decision on whether a panel can decide causation, so we keep a request focused on price. If the carrier has denied part of a claim as not covered, expect it to say the panel cannot reach that part.
Who may serve
We found no Montana license for property-claim appraisers or umpires. Montana's adjuster statute covers people who act for the insurer, and a public adjuster is one retained by and acting for the insured (MCA 33-17-102). Neither definition mentions an appraisal panel. If an appraiser will also negotiate your claim for pay, ask the Commissioner of Securities and Insurance whether a license applies. Policy forms ask for a competent and disinterested person (some say impartial). A contractor who will do the work, or someone paid a share of the claim, invites a challenge.
The award
On standard forms, an award agreed to by two of the three sets the amount of loss. Montana courts have long treated such an award as binding unless a court sets it aside (Solem v. Connecticut Fire, 1910). In Lee v. Providence Washington Insurance (1928), the court described the general rule: an award should not be vacated unless it was made without authority, or came from fraud, mistake, or misconduct by the appraisers. It upheld setting one aside because the panel took off an extra 10 percent for "commercial depreciation" with no factual basis. That case is almost a century old, and we found no recent Montana decision on vacating an appraisal award. Get a Montana attorney's view before you challenge an award or defend one.
Points particular to Montana
MCA 28-2-708 says any stipulation in a contract that limits the time within which a party may enforce its rights is void, with an exception for agreements enforceable under the Montana arbitration chapter. In Thielbar Realties v. National Union Fire (1932), the Montana Supreme Court applied the statute's predecessor to a fire policy and held a 12-month suit clause void, and it repeated that point in 1965. The written-contract limitation period is 6 years (MCA 27-2-202(1)). We found no recent decision on the suit clauses in today's homeowners forms, so write down your policy's deadline and the dates in the insurer's letters anyway.
Montana courts treat appraisal of the amount of loss as different from arbitration. The court upheld a fire-policy appraisal clause in School District No. 1 v. Globe (1965) even though a statute then voided agreements to arbitrate future disputes, and it applied the same reasoning to an auto policy in Garretson v. Mountain West Farm Bureau (1988).
Nelson v. Farmers Union Mutual (2003 MT 101) is a Montana hail case that shows how long this can run. The form gave each side 20 days to name an appraiser, the appraisers 15 days to pick an umpire, and a judge of a court of record the choice if they could not. The parties spent over a year arguing about who the appraisers were, and a district judge ended up choosing the umpire. Your form may read differently.
MCA 33-24-105 requires property policies covering Montana risks to say that the policy conforms to the minimum requirements of Montana law.
MCA 33-18-232 sets the 30 and 60 day pay-or-deny clock after proof of loss and adds 10 percent annual interest when an insurer misses it and owes the claim. The statute says a late payment cannot be the basis of a private lawsuit under the unfair trade practices statutes. An insured who sues under those statutes has 2 years from the violation (MCA 33-18-242(8)), and the insurer is not liable if it had a reasonable basis in law or fact for contesting the claim or the amount (MCA 33-18-242(6)).
A draft bill before a legislative interim committee in March 2026 would require an appraisal provision in automobile policies, with a 10 business day deadline to name experts and to pay an award. It covers auto only and is a draft, not law. Montana's Legislature next meets in 2027.
Common losses in Montana
Each one links back to how we look at that kind of loss.
Questions
How long do we have to name an appraiser in Montana?
Whatever your policy says. No Montana statute we found sets the number, and forms differ. Forms the Montana Supreme Court has quoted gave each side 20 days from a written demand, but count from your own wording.
Who chooses the umpire in Montana if the appraisers cannot agree?
Your policy answers this. Forms the court has quoted send the question to a judge of a court of record in the state where the property is located after 15 days. Read yours for the exact court and the number of days.
Can the appraisers decide whether my loss is covered?
No. Montana treats appraisal as a way to set the amount of loss. Coverage, policy interpretation and bad faith stay with the court. We found no Montana decision on whether a panel can decide causation.
Does demanding appraisal pause the deadline to sue in Montana?
We found no rule that says it does. Montana's 28-2-708 voids contract terms that shorten the time to enforce your rights, and the court struck a 12-month fire-policy clause under its predecessor in 1932. We found no recent decision on current forms, so note the deadline in your policy and the insurer's letters before you demand appraisal.
Can I go to court instead of appraisal in Montana?
Not always. The Montana Supreme Court has held that an insured need not appraise before suing unless the insurer demands it, and the insurer must demand within a reasonable time. Once it is properly demanded for the amount of loss, the court has held the parties to the process. Coverage questions still go to the court.
Do appraisers need a license in Montana?
We found no license for property-claim appraisers or umpires. Adjusters and public adjusters are licensed, and the policy usually asks for a competent and disinterested or impartial appraiser, which is why a person paid a share of the award is open to challenge.
Before you decide anything
Has a claim in Montana stalled on the number?
Tell us what happened and where. We'll read the policy and tell you plainly whether appraisal fits.
When you write to us
- We read the policy, the estimates on both sides and the letters that came with them.
- We tell you plainly whether appraisal fits the disagreement, and if it doesn't, who can help.
- If it fits, we confirm next steps in writing before anything starts.
Reviewed against the sources listed, October 2026. General information, not legal advice.